THE ADMAR GROUP REPORTS RECORD SECOND QUARTER RESULTS
THE ADMAR GROUP REPORTS RECORD SECOND QUARTER RESULTS SANTA ANA, Calif., Sept. 15 /PRNewswire/ -- The Admar Group Inc.
(NASDAQ: ADMR) today announced operating results for the second quarter and six months ended July 31, 1992.
Admar's revenues during the second quarter ended July 31, 1992, resulted in an increase of 13.1 percent from $2,451,000 to $2,773,000 because of the growth of current clients and the addition of new clients. As a result of planned expenditures to develop further growth, operating expenses increased 30.5 percent from $2,351,000 to $3,069,000 for the second quarter ended July 31, 1992, as compared to the second quarter ended July 31, 1991. Net income, when including a provision for income tax, decreased to a loss of $296,000 from a profit of $57,000 for the comparable quarter in 1991. Revenue for the six months ended July 31, 1992, increased by $466,000 to $5,357,000 from $4,891,000 for the same period last year. After tax, net income decreased $674,000 from a profit of $114,000 to a loss of $560,000 for the six months ended July 31, 1992. The decline in income is attributed to the costs resulting from reorganization as well as the continued increase in marketing expenditures. In commenting on the results, Richard T. Toral, chief executive officer and chairman of the board, stated, "We continue to move ahead with our plan of operational and marketing expansion. In the short term, we have realized expected losses. However, as planned, revenues are up $322,000 for the quarter and $466,000 for the year. The month of July showed a record revenue of over $1,000,000. This trend, coupled with the recent acquisition of a telemarketing company and an additional $1,000,000 working capital received as a loan from Humana Inc., puts in a strong position in the future." The Admar Group Inc. develops, markets and administers managed health care services which facilitate the delivery and manage the cost of providing health care through contracted insurance carriers and self-insured employer groups. Admar's services are marketed as an adjunct to employee health care benefit plans. Programs include: Preferred Provider Organizations and Exclusive Provider Organizations; the HealthWatch Medical Review System, designed to ensure appropriate use of hospitalization for medical/surgical, substance abuse, mental health, catastrophic illness and injuries; HealthWatch Advantage, a hospital and surgical negotiation program; and Managed Benefits Division, which provides management of employee benefits. THE ADMAR GROUP INC. Consolidated Statements of Income Six months ended July 31, (Unaudited) 1992 1991 Revenue $5,357,000 $4,891,000 Income (loss) before provision for income taxes (560,000) 200,000 Provision for income taxes --- 86,000 Net income (loss) (560,000) 114,000 Per share data: Net income ($.067) $.014 Weighted average shares outstanding 8,384,000 8,184,000 Second Quarter Ended July 31, (Unaudited) 1992 1991 Revenue $2,773,000 $2,451,000 Income (loss) before provision for income taxes (296,000) 100,000 Provision for income taxes --- 43,000 Net income (loss) (296,000) 57,000 Per share data: Net income ($.035) $.007 Weighted average shares outstanding 8,384,000 8,184,000 -0- 9/15/92 /CONTACT: Edward Evans, VP-finance of The Admar Group, 714-953-9600/ (ADMR) CO: The Admar Group Inc. ST: California IN: HEA SU: ERN
JL-LS -- LA003 -- 9562 09/15/92 11:02 EDT
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|Date:||Sep 15, 1992|
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